In a bid to regain its lost market share in the compact car segment, Tata Motors is working on a new small car codenamed Kite, reports The Economic Times. The car, which will be manufactured at the company's Sanand plant in Gujarat, will be launched in late 2015, the report said.

A person with knowledge of the project said, "The company is looking at the vast potential as its current models like Indica cannot serve the small car market and Nano has not achieved the desired results. Kite would be placed in between the Nano and the Indica".

Amit Kaushik, an analyst at IHS Automotive, said, "Tata Motors has a great reach in market, but it has issues of quality as it is a key to success in this segment with the demanding Indian customer having a lot of options to choose from these days. It will be interesting to see how Tata differentiates its sub-1000 cc product and offers a greater value to the customer from the established products in the segment".

Once production starts, the Sanand plant will manufacture 150,000 units of Kite per year. The company is developing the car under its MY15 programme.

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